Andhra Pradesh: Liquor price move aimed at bringing down consumption

Amaravati: The state government's decision to increase the liquor prices by another 50 per cent taking the overall hike in the price to 75 per cent in two days has taken the fizz out of the drink of the boozers. Whether this will encourage tipplers to drink less and drive the State towards the goal of total prohibition is to be seen.

AP is one of the highest liquor consuming States' in the country with about 10 per cent of liquor being consumed here. In its earlier avatar, united AP was the highest consumer even in the beer segment.

At present there are in all 3,468 retail liquor outlets run by the State-owned AP State Beverages Corporation Limited.

Of these 2,345 were opened in the State following lockdown 3.0 easing of restrictions by the Union Home Ministry. In fact, AP has introduced the new excise policy last year to take over the outlets and gradually phase out sale of liquor in the State.

Chief Minister YS Jagan Mohan Reddy's stated objective is to impose total prohibition by the fifth year of his term as Chief Minister whereupon it will be confined only to the five star hotels.

The total number of shops was around 4,300 which had been reduced to 3,468. Soon, this will be further reduced by another 15 per cent.

Liquor consumption came down in the State between last May and October by about 48 per cent after the closure of 40,000 illegal liquor outlets, 880 licensed liquor shops and by government taking over the business.

Significantly, between January 1 and September 30 of 2019, Andhra Pradesh earned excise revenue of Rs 3,326.68 crore. It was around Rs 3,839 crore in 2014-15 but rose to Rs 5,789 crore in 2017-18.

The excise revenue which stood at Rs 3,839 crore in 2014-15, rose to Rs 5,789.67 crore in 2017-18. When the government took over the business in 2019, it fell to Rs 1,038.89 crore between May and October (the same was Rs 1,701.24 crore in the previous year for the corresponding period).

The present hike too is expected to lower the consumption as well the revenue.